Chicago Constructions ... vs Kerala Water Authority
2022 Latest Caselaw 1578 Ker

               IN THE HIGH COURT OF KERALA AT ERNAKULAM
                               PRESENT
                 THE HONOURABLE MR.JUSTICE N.NAGARESH
     TUESDAY, THE 15TH DAY OF FEBRUARY 2022 / 26TH MAGHA, 1943
                       WP(C) NO. 25425 OF 2021
PETITIONER:

          M/s.CHICAGO CONSTRUCTIONS INTERNATIONAL PRIVATE
          LIMITED,
          HAVING ITS REGISTERED OFFICE AT TC 22/2703,
          CHITHIRA LANE, KOCHAR ROAD, SASTHAMANGALAM,
          THIRUVANANTHAPURAM-695010,
          REPRESENTED BY ITS MANAGING DIRECTOR
          SRI. S.MOHANA KUMAR.

          BY ADVS.
          N.KRISHNA PRASAD
          DEEPAK VARUGHESE MATHEW


RESPONDENTS:

    1     KERALA WATER AUTHORITY,
          REPRESENTED BY ITS MANAGING DIRECTOR,
          JALA BHAVAN, VELLAYAMBALAM,
          THIRUVANANTHAPURAM-695033.

    2     THE MANAGING DIRECTOR,
          KERALA WATER AUTHORITY
          JALA BHAVAN, VELLAYAMBALAM,
          THIRUVANANTHAPURAM-695033.

    3     THE SUPERINTENDING ENGINEER,
          KERALA WATER AUTHORITY
          P.H.CIRCLE, THRISSUR-680001.

    4     THE EXECUTIVE ENGINEER,
          KERALA WATER AUTHORITY
          PROJECT DIVISION, NATTIKA,
          THRISSUR DISTRICT, PIN-680966.

          BY ADV. SHRI.P.BENJAMIN PAUL, SC, KERALA WATER
          AUTHORITY

     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
15.02.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 WP(C)No.25425/2021

                                  2




                           JUDGMENT

Dated this the 15th day of February, 2022

The petitioner, a Construction Company, has filed

this writ petition seeking to command the respondents to

release the trial run amounts deducted vide Ext.P8 as

expeditiously as possible and subject to the petitioner

furnishing a bond for the said amount and to declare that the

deduction of amounts towards "energisation" and

"miscellaneous" charges from the final bill namely Ext.P8

relating to the work awarded to the petitioner is arbitrary and

illegal.

2. The petitioner was awarded the work "AMRUT-WSS

to Guruvayur Municipality - in Thrissur Corporation - Package

I and II - Design, construction and commissioning of 9m dia

intake wellcum pumphouse, 15 MLD Water Treatment Plant,

clear water pump house at Kottapadi and supply, erection, WP(C)No.25425/2021

testing and commissioning of 4 nos RW pump sets having

discharge of 951ps against head of 62m and 2nos. CW pump

sets having discharge 182lps against head of 35m, 2 nos.

500KVA 11KV/433V transformers and other related works" by

the Kerala Water Authority. The petitioner has completed the

work, contends the petitioner. However, the retention amount

and amount withheld towards energisation charges are

indefinitely retained by the respondents. Unless the

respondents are compelled to pay the amount, the petitioner

will be put to untold hardship, contends the learned counsel for

the petitioner.

3. The learned Standing Counsel, on instructions,

submits that though the petitioner has completed his part of

the work, component works to be carried out by other

contractors are not completed. It is in such circumstances that

the amount payable to the petitioner was not paid.

4. I have heard the learned counsel for the petitioner

and the learned Standing Counsel representing the WP(C)No.25425/2021

respondents.

5. As long as the respondents have no dispute

regarding the bills submitted by the petitioner, this Court is of

the view that the respondents are not justified in withholding

the retention amount for the reason that other component

works are not over.

In such circumstances, the writ petition is disposed

of directing the respondents that if the petitioner submits an

indemnity bond in favour of the respondents, the retention

amount withheld by the respondents shall be released within a

period of three months. As regards the energisation charges

withheld, the 3rd respondent shall consider Exts.P10 and P11

representation submitted by the petitioner and take a decision

thereon within a period of two months.

Sd/-

N. NAGARESH JUDGE SR WP(C)No.25425/2021

APPENDIX OF WP(C) 25425/2021

PETITIONER'S EXHIBITS:

Exhibit P1 TRUE COPY OF THE NOTICE INVITING TENDER (NIT).

Exhibit P2 TRUE COPY OF THE PROCEEDINGS DATED 3.9.2018 OF THE SECOND RESPONDENT. Exhibit P3 TRUE COPY OF THE SELECTION NOTICE DATED 4.9.2018.

Exhibit P4 TRUE COPY OF THE ACCEPTED PRICE SCHEDULE OF THE LUMPSUM CONTRACT.

Exhibit P5 TRUE COPY OF THE BANK GUARANTEE FOR AN AMOUNT OF RS.29,12,500/-.

   Exhibit P6           TRUE     COPY     OF     THE     AGREEMENT
                        NO.6/SE/PHC/TSR/2018-19              DATED
                        27.9.2018.
   Exhibit P7           TRUE COPY OF THE EXPERIENCE CERTIFICATE
                        DATED 26.5.2021.
   Exhibit P8           TRUE   COPY   OF    THE    REQUEST   DATED
                        18.2.2021.
   Exhibit P9           TRUE COPY OF FORM CB III VOUCHER DATED
                        17.2.2021.
   Exhibit P9(A)        STATEMENT SHOWING THE AMOUNTS RELEASED
                        TO THE PETITIONER.
   Exhibit P10          TRUE COPY OF THE COMMUNICATION DATED
                        26.3.2021.
   Exhibit P11          TRUE COPY OF THE COMMUNICATION DATED

27.5.2021 ISSUED BY THE PETITIONER TO THE FOURTH RESPONDENT.

Exhibit P12 TRUE COPY OF THE JUDGMENT DATED 8.1.2021 IN WRIT PETITION (CIVIL) 3766/2020.

SR